SAEF vs SPY
Schwab Ariel Opportunities ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SAEF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.09% | |
| AUM | $19M | $789.1B | |
| Dividend Yield | 0.33% | 1.01% | |
| Holdings | 59 | 505 | |
| YTD Return | -12.00% | +13.79% | |
| 1Y Return | -8.20% | +23.66% | |
| 3Y Return (annualized) | +2.62% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 24.6% | 15.3% | |
| Max Drawdown | -28.1% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 15, 2021 | Jan 22, 1993 |
SAEF vs SPY Performance
Schwab Ariel Opportunities ETF (SAEF) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SAEF returned -8.20% while SPY returned +23.66%. Year to date, SAEF is down 12.00% versus a gain of 13.79% for SPY.
Over three years, SAEF compounded at +2.62% per year against +21.40% for SPY. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs -0.25%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SAEF has been the more volatile fund, with annualized monthly volatility of 24.6% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -28.1% for SAEF and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SAEF charges 0.59% per year while SPY charges 0.09%. On a $10,000 position that is $59 vs $9 annually, a gap of $50 per year that compounds over a long holding period. On income, SAEF currently yields 0.33% against 1.01% for SPY.
Holdings Overlap
SAEF and SPY share 20 holdings out of 541 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SAEF or SPY?
SAEF has an expense ratio of 0.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, SAEF or SPY?
Over the past year SAEF returned -8.20% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SAEF annualized -0.25% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SAEF or SPY?
SAEF has been the more volatile fund at 24.6% annualized versus 15.3% for SPY. Worst drawdown: SAEF -28.1% vs SPY -56.5%.
Should I hold both SAEF and SPY?
SAEF and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SAEF and SPY?
SAEF and SPY share 20 common holdings with a 1.1% weight overlap. Combined, they hold 541 unique securities.
Which pays a higher dividend, SAEF or SPY?
SAEF yields 0.33% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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